Notice to the Market - QGEP Provides Update on Asset Portfolio

"We ended 2011 with a greatly expanded asset portfolio, comprised of high quality prospects in the most prolific areas of
oil and gas discoveries in Brazil," said José Augusto Fernandes Filho, QGEPs Chief Executive Officer. "Importantly, the combination
of positive operating cash flow and a strong balance sheet provides us with the resources to continue the expansion and diversification
of our portfolio."

Manati Field

At the end of the fourth quarter, all six of wells were in operation, reaching an average daily gas production of 5.2 MMm³
for December 2011. For most of the fourth quarter, the Manati Field produced from five of its six wells, resulting in an average
daily gas production of 4.7 MMm³ for the fourth quarter. As previously reported, in 2012 each well will individually undergo
programmed maintenance, which is not expected to affect the average forecasted production of 6MMm3 per day.

BM-S-12

At Block BM-S-12, one of QGEPs most promising assets located in the Santos Basin, drilling activities continue towards the
Santos #2 prospect with the Ocean Baroness Rig. The well is currently being underreamed, a well enlargement procedure, to
run the 117/8" liner and is at a depth of 4,880 meters. A total depth of approximately 6,400 meters is expected to be reached
by the end of the first quarter. Once drilling is concluded and final logging has been completed, evaluation tests will be
considered. QGEP holds a 30% participating interest in this block, which is operated by Petrobras.

BM-S-8

Drilling at Block BM-S-8, one of the largest blocks in the region, continues on schedule. At Carcará, one of the pre-salt
prospects in the block, drilling began in December and the well is currently at a depth of approximately 3,140 meters. A final
depth of approximately 6,900 meters is expected to be reached within the next five months. Acquired through a farm-in agreement,
Block BM-S-8 presents high pre-salt potential. QGEP holds a 10% interest in this block, which is operated by Petrobras.

BM-J-2

At the BM-J-2 exploration block, located in the Jequitinhonha Basin, drilling activities are expected to be restarted during
the second quarter of 2012 under an environmental license already obtained, which allows drilling activities through June
2013. The well is currently at a depth of 2,540 meters and total depth is estimated at 4,700 meters.